Question

Prepare the accounting equation on the basis of the following data.
(a)Harsha started business with cash ₹ 2,00,000
(b)Purchased goods from Naman for cash ₹ 40,000
(c)Sold goods to Bhanu by cash for ₹ 12,000
(d)Bought furniture on credit ₹ 7,000.

Answer 1

Explanation:

(a) Cash ac Dr 200000

To capital ac. 200000

(b) Purchase ac Dr. 40000

To naman ac. 40000

(c) Bhanu ac Dr 12000

To sales ac 12000

(d) furniture ac Dr 7000

To capital ac. 7000